Turkiye Sise Ve Cam Fabrikalari A.s. · BIST:SISE
Turkiye Sise Ve Cam Fabrikalari A.s — Şişecam — H1 2020 Earnings Presentation
36 slides from Turkiye Sise Ve Cam Fabrikalari A.s's earnings presentation, 2020
Slide 1: Investor Presentation H1 2020
ŞİŞECAM Investor Presentation H1 2020
Slide 2: Content
Content First-Half & Historical Financial Results Page 3-4 First-Half & Historical Segmental Results Page 5-7 First-Half & Historical Regional Results Page 8-9 First-Half & Historical Operational Results Page 10-13 Liquidity & Capital Allocation Page 14-18 Şişecam New Implementations Page 19-20 Sust
Slide 3: First-Half Financial and Operational Results
First-Half Financial and Operational Results Revenue (TL mn) Gross Profit (TL mn) EBITDA (TL mn) Net Income After 3% Minority Interest 33% (TL mn) 8.834 8.617 29% 2.806 4.220 2.583 4.695 23% 21% 1.518 1.086 11% 2.024 1.864 6% 1.039 720 961 4.615 480 3.923 1.496 518 1.288 1.144 85 984 481 433 H1'19 H
Slide 4: Historical Financial Results
Historical Financial Results TL mn 26% 25% 24% 21% 22% 18.059 15.550 11.318 8.569 7.415 4.033 4.298 2.810 1.594 1.919 2015 2016 2017 2018 2019 Revenue Adjusted EBITDA Adjusted EBITDA Margin 2015 2016 2017 2018 2019 Revenue Growth Y-o-Y 8% 16% 32% 37% 16% 4
Slide 5: First-Half Segmental Revenue and EBITDA
First-Half Segmental Revenue and EBITDA Flat Glass (TL mn) Glassware (TL mn) Glass Packaging (TL mn) Chemicals (TL mn) 27% 28% 22% 26% 26% 15% 3.234 8% 2.684 13% 2.424 1.718 1.880 1.844 1.964 1.180 1.477 1.298 1.102 1.312 983 957 809 578 1.515 1.504 668 720 778 1.112 861 1.007 H1'19 H1'20 H1'19 H1'2
Slide 6: First-Half Segmental Revenue and EBITDA
First-Half Segmental Revenue and EBITDA Diversified Revenue Mix Revenue Bridge (TL mn) 5% 22% 30% H1’20 15% 28% Flat Glass Glassware Glass Packaging Chemicals Other Adjusted EBITDA Bridge (TL mn) Diversified EBITDA Mix 4% 12% 9% 40% H1’20 35% 6
Slide 7: Historical Segmental Financial Results
Historical Segmental Financial Results Flat Glass (TL mn) Glassware (TL mn) Glass Packaging (TL mn) Chemicals - SODA (TL mn) 7
Slide 8: First Half Regional Results
First Half Regional Results Geographic Revenue Mix Regional Breakdown of Exports from Turkey 2% 7% 14% 12% 41% H1’20 10% H1’20 50% 20% 7% 14% 23% Sales in Turkey Exports from Turkey Europe Middle East North America Europe Russia, Ukraine and Georgia Asia North Africa Other Other Top 10 Export Countr
Slide 9: Historical Regional Results
Historical Regional Results TL mn 18.059 3% 15.550 2% 22% 23% 11.318 14% 14% 22% 8.569 24% 7.415 14% 20% 23% 18% 11% 10% 24% 23% 23% 37% 39% 46% 40% 49% 2015 2016 2017 2018 2019 Sales in Turkey Exports from Turkey Russia, Ukraine and Georgia Europe Other 9
Slide 10: First-Half Operational Results
First-Half Operational Results Soda Ash Production Chromium Chemicals Glass Production Soda Ash Sales Volume K tons K tons Sales Volume 2.345 K tons 2.306 1.181 1.125 K tons 1.124 68 1.053 63 980 1.019 460 420 862 804 59 56 1.365 1.287 721 705 262 250 9 7 H1'19 H1'20 H1'19 H1'20 H1'19 H1'20 H1'19 H1
Slide 11: Historical Production Results - Glass
Historical Production Results - Glass K tons Foreign Operations; 41% Foreign Operations; 42% Foreign Operations; 42% Foreign Operations; 43% Foreign Operations; 42% Turkey; 59% Turkey; 58% Turkey; 58% Turkey; 57% Turkey; 58% 4.947 5.052 4.464 4.791 1% 1% 4.127 1% 2% 2% 43% 43% 41% 47% 50% 10% 10% 9%
Slide 12: Historical Production & Sales Volume - Chemicals
Historical Production & Sales Volume - Chemicals K tons Soda Ash Production K tons Soda Ash Sales Volume 2.380 K tons 2.278 2.343 2.361 2.170 2.273 2.327 2.307 2.223 2.026 36% 38% 39% 40% 40% 64% 76% 77% 66% 78% 60% 64% 62% 61% 60% 34% 36% 22% 24% 23% 2015 2016 2017 2018 2019 2015 2016 2017 2018 201
Slide 13: Installed Capacities
Installed Capacities Soda Ash Flat Glass Glassware Glass Packaging 7% 5% 3%2% 6% 35% 39% 12% 28% 3,2mn 560K 2,65mn 3,6mn tons/year 51% tons/year tons/year 54% 54% 44% tons/year 14% 13% 10% 7% 16% Turkey Russia Bulgaria Turkey Russia Ukraine Georgia Turkey Bosnia Bulgaria USA Turkey Russia Bulgaria E
Slide 14: Debt Position
Debt Position Liquidity and Debt Structure (TL mn) Net Debt Bridge (TL mn) 16.928 3.373* Marketable Net Debt/EBITDA Securities 1.14x 7.948 Cash and cash equivalents Net Debt 5.607 H1'20 70% Fixed Int. Rate vs Term Structure of Gross Debt (TL mn) 30% Variable Int. Rate Other USD 16.928 RUR 4% 3% 8% 7
Slide 15: Historical Debt & Liquidity Results
Historical Debt & Liquidity Results 15.846 TL mn 2.963* 8.009 8.369 5.780 5.897 2.606* 4.614 1.085* 29* 1.878* 3.164 3.144 3.205 3.439 4.513 1.440 1.489 2.239 580 2015 2016 2017 2018 2019 Net Debt Cash and cash equivalents Marketable Securities Net Debt/EBITDA** 0,82 0,70 0,19 0,46 0,93 Net Debt/Equ
Slide 16: Historical FX Position
Historical FX Position TL mn 2015 2016 2017 2018 2019 5.431 1.540 1.522 1.087 788 678 104 56 73 176 186 -378 -874 -747 USD EUR Other Currencies -2.115 16
Slide 17: FCF & Capex
FCF & Capex (TL mn) H1'19 H1'20 Change Realized Capex Canceleld / Delayed Portion Net Profit 1.349 862 -487 Non Cash Items 644 1.043 399 Changes in Working 70% Lower Capital -959 -1.388 -429 than Planned Cashflow from operations 1.035 518 -517 Interest received,net -52 -367 -315 Dividend paid,net -5
Slide 18: Historical Capex Analysis
Historical Capex Analysis TL mn 15% 14% 14% 16% 8% 18.059 15.550 11.318 8.569 7.415 4.884 4.868 3.120 2.890 1.764 1.106 2.120 2.221 1.158 897 2015 2016 2017 2018 2019 Revenue EBITDA Capex Capex/Revenues EBITDA/Capex 1,60 1,83 3,48 2,20 1,68 18
Slide 19: Şişecam: New Implementations
Şişecam: New Implementations The First Blockchain Transaction in Turkey Investor Relations Mobile Application The first trade finance transaction on Technology to increase security, speed and - Mobile toolkit to examine earnings results, Marco Polo blockchain network in operational efficiency in int
Slide 20: V-Block Technology - Paşabahçe
V-Block Technology - Paşabahçe • Neutralizes viruses and bacteria on • First to be offered in Turkey, then in glass surfaces export market • Special chemical formula and hot • Initial production is planned by August coating method • Further plans to implement this • Patent process in ongoing technol
Slide 21: Şişecam's Sustainable Strategy: CARE for NEXT
Şişecam’s Sustainable Strategy: CARE for NEXT 21
Slide 22: Sustainability
Sustainability Key Sustainability Achievements The Group is among the first 100 in “Best Emerging Markets Performers” Viego Eiris Sustainability Index • 5.5% re-use of waste water • 23% of cullet usage in production of container glass PRESERVE • NOx emission reduction in 8 furnaces Natural Resources
Slide 23: Progress Status
Progress Status CO preserve Ce: empower GD progress Reuse of 5% of industrial waste water Using at least 20% recycled glass through glass packaging production Reduction of NOx emission values with primary measures in at least 10 glass furnaces Development of at least 4 industrial synergy programs In
Slide 24: Sustainability: Corporate Governance
Sustainability: Corporate Governance Corporate Governance Rating of Sisecam was revised to 9,534 from 9,528 in December 2019. As a Corporate Policy, Şişecam continues to strive for reaching the highest level of Corporate Governance practices, where its heritage of «good corporate governance practice
Slide 25: Şişecam at a Glance
Şişecam at a Glance $3,2 Billion 5 Million Tons 2,4 Million Tons 21.848 Presence in 14 Revenue Glass Production Soda Production Employees Countries 10th Soda Ash Leader Producer in 4th Chromic Acid 5th Flat Glass 3rd Glassware 5th Glass Packaging Producer Globally Basic Chromium Producer Producer Gl
Slide 26: Risk Management Policies
Risk Management Policies Leverage Leverage with conservative NET DEBT / EBITDA levels Maintain sufficient liquidity to meet short-term funding and finance equity portion of Liquidity Capex FX Position FX position limited to +/- 25% of shareholder’s equity Not only a diversified relationship banks po
Slide 27: Appendix
Appendix • Summary Balance Sheet • Summary Income Statement • Covid-19 Impact & Our Response • Post Covid Potential Benefits • FX Exposure • COGS Analysis • Natural Gas Prices & Profitability 27
Slide 28: Summary Balance Sheet
Summary Balance Sheet SUMMARY BALANCE SHEET (Million TL) 2019 2020 H1 Change Total Assets 38.751 40.642 5% Cash & Cash Equivalents 8.369 7.948 9% Financial Assets & Derivatives 3.053 3.732 16% Trade Receivables 3.572 3.948 4% Inventories 3.831 4.498 11% Equity-Pickups 711 849 15% Property, plant and
Slide 29: Summary Income Statement
Summary Income Statement SUMMARY INCOME STATEMENT (Million TL) 2019 H1 2020 H1 Change Revenue 8.617 8.834 3% Cost of Goods Sold -5.812 -6.252 8% Gross Profit 2.806 2.583 -8% General and administrative -496 -562 13% Sales and marketing -1.132 -1.169 3% Research and development -38 -33 -15% Other oper
Slide 30: Covid-19 Impact & Our Response
Covid-19 Impact & Our Response Health & Safety • Emergency Coordination Committee was establised • Highest-level of preventative measures in accordance with WHO, CDC and Ministry of Health directives • Remote work, planned annual leaves and short time work Impacts on Our Operations • Supply-chain ac
Slide 31: Post Covid Potential Benefits
Post Covid Potential Benefits Flat Glass Increase in potential of energy glasses and export of other flat glass products Auto Glass Replacement market in Europe and USA, OEM market in Europe Glassware Glassware produced with V-Block technology Glass Increase in export potential to Europe - USA Packa
Slide 32: Fx Exposure – H1'20
Fx Exposure – H1’20 Flat Glass Glassware Revenue 7% 51% 36% 2%4% Revenue 5% 18% 41% 33% 3% COGS 10% 52% 27% 7% 3% COGS 23% 42% 35% 1% USD EUR TRY RUB Other USD EUR TRY RUB Other Glass Packaging Chemicals Revenue 16% 27% 42% 10% 5% Revenue 50% 43% 7% COGS 2%4% 45% 15% 34% COGS 22% 33% 44% USD EUR TRY
Slide 33: COGS Analysis- H1'20
COGS Analysis- H1’20 Chemicals 35% 15% 5% 8% 7% 30% Glass Packaging 38% 15% 9% 11% 13% 14% Glassware 44% 13% 6% 31% 6% Flat Glass 46% 19% 7% 9% 9% 10% Input & Materials & Packaging Ngas Electricity Labor Depreciation Outsourcing & Other 16% 9% 40% Şişecam 11% 7% 17% Input & Materials & Packaging Nga
Slide 34: Natural Gas Prices & Profitability - H1'20
Natural Gas Prices & Profitability - H1’20 Natural Gas Price Changes 2012 - April 20% Hike Actual Turkey Ngas Expense % in total COGS 2012 - October 10% Hike 2014 - October 9% Hike 15% 2016 - October 10% Discount 11% 10% 7% 9% 2017- December 8% Hike for Electricity Producers 2018 - January 13.6% Hik
Slide 35: Disclaimer
Disclaimer This information in this document has been obtained by T. Şişe ve Cam Fabrikaları A.Ş. (“Şişecam” from sources believed to be reliable, however, Şişecam cannot guarantee the accuracy , completeness, or correctness of such information. This document has been issued for information purposes
Slide 36: Contact Details
Contact Details T. Şişe ve Cam Fabrikaları Şişecam Genel Merkezi D-100 Karayolu Cad. No:44A 34947 Tuzla/İstanbul Turkey Tel : (+90) 850 206 50 50 Fax: (+90) 850 206 40 40 Görkem Elverici, Chief Financial Officer gelverici@sisecam.com Investor Relations Team SC_IR@sisecam.com Hande Özbörçek hozborcek